eFinancialCareers

Wall Street will accelerate layoffs this year, shrink severance packages and retention efforts, and defer more pay. As for bonus expectations, already down 25 - 35 percent year-on-year, they'll melt further if asset write-downs exceed current projections. Those are the words from Johnson Associates, a compensation consultant whose clients include many large financial institutions. The firm's second-quarter report spotlights the downside risk to its own projections for 2008 bonuses. It... Read more

The investment firm says it's plowing savings from a previous 10 percent staff reduction, toward hiring top talent cut loose by rival firms. As securitization deals evaporate, Cadwalader law firm lays off 96 attorneys, primarily real estate finance and securitization specialists. UBS names co-heads of prime brokerage in Europe. *** After cutting its payroll by $1 billion by eliminating 4,800 jobs, Morgan Stanley said last week it intends to reinvest as much... Read more

The days of Canadian financial services firms going on hiring binges are long gone, but unlike in the U.S., major layoffs aren't looming. Officials at the Investment Industry Association of Canada expect firms to continue hiring this year, though not as robustly as they have in the past, says Executive Director Ian C.W. Russell. Many companies are also reluctant to let go employees, especially those who've received a large investment... Read more

Negotiating compensation is a delicate dance that begins when you first apply for a job. Often, candidates are asked for information they may not wish to provide at the outset, when a job posting asks for their current or most recent compensation. "I have real reservations about disclosing comp without knowing who the other party is," says New York career counselor Roy Cohen. On the other hand, if a company... Read more

First, Morgan Stanley cut 4,800 jobs to save money. Now, it might spend the savings - estimated at more than $1 billion - on new hires. The Financial Times reports the firm is planning to hire executives with an eye toward “(bolstering) its presence in areas such as derivatives, risk management and proprietary trading." The idea is to recruit the best and brightest among those laid off by other firms... Read more

New York City officials see Wall Street bonuses shrinking more than 30 percent, while the state forecasts a more modest 20 percent pullback. In Chicago, risk management jobs are booming. *** With 2008 past the halfway mark, the latest year-end bonus projections point to a plunge of more than 30 percent from 2007 - an even gloomier view than three months ago, when Wall Street was digesting the Bear Stearns fiasco. The... Read more

As the credit markets continue to deteriorate and large financial institutions tighten controls, a number of Chicago firms are seeking risk management professionals in many specialties. "Risk management is certainly an area where there is hiring," says Gene Starr, president of New York-based E. D. Starr & Company, a recruiting firm that specializes in management consulting and risk management. "Risk management is counter-cyclical and right now there is a strong need."... Read more

Sure, the sub-prime mess probably means it will be a while before there's resurgence in credit jobs. But if you read beyond the headlines, the future may be bright after all. Lost in Wall Street's stream of billion dollar write-offs are big-picture themes like globalization and regulation, which continue to produce opportunities for financial professionals, writes Andrea Kay, author of Life's a Bitch and Then You Change Careers: 9 Steps to... Read more

Canadians working in the securities industry don't want their work to be their life, or their life to be their work - even at a time when employers are trying to do more with less. Twenty six percent of CFOs recently polled by Accountemps said heavy workloads were the greatest source of work-related concerns for finance and accounting professionals in Canada. Work/life balance ranked second in the survey of 270 finance... Read more

With 2008 past the halfway mark, the latest year-end bonus projections point to a plunge of more than 30 percent from 2007 – an even gloomier view than three months ago, when Wall Street was digesting the Bear Stearns fiasco. New York City's comptroller sees bonuses shrinking "in excess of 30 percent" this year, Frank Braconi, the chief economist in the comptroller’s office, told the New York Times. "That would amount... Read more

New York Governor David Paterson estimated that Wall Street bonuses will shrink 20 percent this year, severely denting the state's financial outlook. The 20 percent figure is within the range of estimates released earlier in 2008 by private-sector forecasters such as Johnson Associates. Despite the housing slowdown last year, Wall Street professionals raked in $33.2 billion in bonuses for 2007 - only slightly below 2006's $33.9 billion, according to the... Read more

In the current market environment, like any other, the decision to leave a company isn’t always yours to make. But what if it is? For many senior level employees at global firms, the choice between leaving a sinking ship or sticking it out for the long haul presents many challenges. First, it’s important to consider whether you are up for the task of starting anew and assimilating into a new... Read more

Freddie Mac Chairman and Chief Executive Richard Syron received nearly $20 million in compensation last year, according to a filing with the Securities and Exchange Commission. The filing comes a week after the government proposed legislation that would make possible a federal bailout of Freddie and Fannie Mae amid liquidity concerns and plunging stock prices. Combined, the two largest government-sponsored mortgage institutions own or guarantee $5.2 trillion of U.S. home... Read more

Fund management firm American Century adds a five-year lookback period to bonus formulas. Global banking group's report calls for tying pay to risks taken. Financial firms pull back IT outsourcing amid slower spending growth. *** American Century Investments will restructure its bonus system for portfolio managers by adding a five-year performance component and comparing their returns with a benchmark instead of a peer group, according to Fund Action newsletter. The move will... Read more

The Institute of International Finance is recommending Wall Street' securities firms make their pay practices more transparent and tie compensation more to market risk. Earlier this year the group was reported to be drawing up a wide-ranging recommendation to revamp, among other things, the way bonuses are awarded. Its 200-page report claims to establish "best practices" for banking industry compensation. By aligning pay with risk-adjusted performance and adopting the report's... Read more

The financial sector may be rethinking the idea of IT outsourcing as a long-term strategy. Computer Economics, a research firm based in Irvine, Calif., believes the financial industry is pulling back on outsourcing projects and bringing many IT operations in-house. The firm conducts an annual survey that benchmarks IT operations trends, staffing trends and salary trends in a variety of industries. "This is peculiar to the financial sector," says John Longwell, the... Read more